Buying The Hamptons: Get A Buyers Agent

East Hampton’s world-class beaches and village are moments away from this 6-bedroom Georgica residence listed by Ann Ciardullo of Sotheby's International Realty. (Courtesy Photo)

In an article posted earlier this month, we addressed issues related to selling a home from the seller's perspective. In this article we will examine issues from the buyer's perspective.

In most cases on both the South Fork (The Hamptons) and North Fork of Eastern Long Island, real estate brokers by custom represent sellers. The practice of representing buyers is still pretty much in its infancy, although more buyers are requesting buyer representation.

A buyer may employee a brokerage firm to represent the buyer by entering into three types of buyer agency agreements: an exclusive right to buy buyer agency agreement; an exclusive agency buyer agency agreement; an open buyer agency agreement.

With an exclusive right to buy buyer agency agreement the brokerage firm representing the buyer is entitled to a commission whether the buyer buys a property through that brokerage firm, another brokerage firm, or directly from an owner.

In an exclusive agency buyer agency agreement the buyer is obligated to pay a commission to the brokerage firm whether that brokerage firm finds the property or another brokerage firm finds the property, but not if the buyer purchases a property directly from the seller unless a broker had shown that property to the buyer. This type of buyer agency agreement is not as appealing as the first type because the brokers could be working for nothing as well as competing with the buyer.

With an open buyer agency buyer agency agreement the buyer is only obligated to compensate the brokerage firm that finds the property or no broker if the buyer finds a property not shown to them by a broker. This is not appealing to brokers and may also impose potential liability upon the buyer for acts of each of the agents.

A buyer who has been pre-approved by a lender has an advantage over a buyer who has not. It provides the buyer and the seller with a more realistic picture of what the buyer can afford to pay.

Many buyers today start their search for a property on the internet and eventually work through a real estate broker. Typically, most of the brokerage firms in a given area share listings and therefore it is not necessary to go through a number of different brokerage firms to see properties listed for sale. They also usually share the commissions equally, whether representing buyers or sellers.

A buyer who doesn't have to sell one property to buy another is more attractive to a seller and brokerage firms than one who does.

"An educated consumer is our best customer," said businessman Sy Syms. Today, as a result of the internet many buyers of real estate are educated consumers. But just as Mr. Syms knew his product better than most consumers, so do real estate brokers.

Among the issues that can obstruct a purchase could be the existence of certificates of occupancy, closing dates, environmental issues, transfer taxes levied in certain areas, covenants and restrictions, and liens and encumbrances.

It is advisable to consult the attorney who is going to represent you in the purchase of a property before beginning the purchasing process.

John is a St. John's University graduate, licensed Real Estate broker, lecturer, teaches real estate license classes at LIU, NYU, and Cook Maran Real Estate School, and is a well-respected consultant to the real estate industry. www.johnaviteritti.com

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Two Of The Most Respected Names In The Community
Together, they are partners in CP Complete. They bring their years of experience
and integrity to creating and renovating luxury backyards.

Hamptons luxury real estate specialist for 33 years, Andrea Ackerman offers outstanding expertise in the field. Trusted, experienced and successful, Andrea has solidified herself as the go-to broker of the Hamptons and a wholehearted advocate for her clients. A pioneer in the real estate industry on the East End of Long Island, she is driven by her passion for the business. Andrea is based in the Bridgehampton office of Brown Harris Stevens as a licensed real estate associate broker and consultant.
Formerly, a principal partner and Senior Director at Brown Harris Stevens, Andrea now assists in developing their corporate strategy for the Hamptons region, advising other brokers and sales associates, as well as being one of the top producers and listors.

Brown Harris Stevens is the quintessential luxury real estate firm, with a history of leadership and a culture of professionalism and discretion dating back to 1873. At every level of Brown Harris Stevens, you will find highly experienced, knowledgeable experts, single-mindedly devoted to your interests and your satisfaction. With offices in the Hamptons, New York City, Palm Beach, and Miami our brokers are exceptional - leading the field with the quality of their work ethic, their outstanding success rate and the sheer quantity of their transactions.

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